AI Race Moves Up a Gear: Grok Launches, Governments Ramp Investments

In this week’s CNC mid-week editions, we share a sweeping view of the latest AI breakthroughs taking shape across international horizons. 

Leading the charge is Elon Musk’s xAI, electrifying the tech world with the debut of Grok-3, hailed as “the smartest AI on Earth.” Meanwhile, Google’s new partnership with Poland promises a dramatic overhaul of cybersecurity and energy infrastructure. Not to be outdone, OpenAI stirs debate by “uncensoring” ChatGPT, challenging the boundaries of intellectual freedom in AI.

Goldman Sachs—betting big on China’s AI prowess—raises stock market targets, while in South Korea, leaders scramble to secure a massive GPU cluster in a bid for national AI supremacy. Taken together, these stories underscore a rapidly shifting AI race—one propelled by innovation, high-stakes investment, and geopolitical maneuvering.

At a Glance

1. Grok-3 Launch Ignites a New Era in AI Rivalry

2. Google and Poland Forge AI Partnership

3. OpenAI Tries to Uncensor ChatGPT

4. Goldman Sachs Raises China Stock Market Target on AI Boost

5. South Korea Aims to Secure 10,000 GPUs for National AI Center

1. Grok-3 Launch Ignites a New Era in AI Rivalry

Elon Musk’s xAI sent shockwaves through the tech world on February 18, 2025, with the grand unveiling of Grok-3, broadcast live on his social platform X. Billed as the “smartest AI on Earth,” this updated model is available to $40 “Premium+” subscribers and through xAI’s standalone app, and promises notable advancements in coding, math, and scientific problem-solving. The demo also showcased a brand-new feature called “Deep Search,” which scours web pages and X posts to deliver context-rich answers—a bold response to rival platforms’ AI-powered search tools.

During the livestream, xAI leaders boasted Grok-3’s superior performance over Google’s Gemini, OpenAI’s GPT-4o, Anthropic’s Claude 3.5, and DeepSeek’s V3. Musk, ever confident, described the model as “kind of a beta” but “scary smart,” urging enthusiasts to expect quick-fire improvements. Despite the AI’s eye-catching debut, competition in the sector continues to intensify: DeepSeek’s efficient approach in China has triggered U.S. concerns over chip exports, while OpenAI recently shot down Musk’s $97.4 billion buyout offer, declaring,

“OpenAI is not for sale.”

Yet xAI is forging ahead at full throttle, doubling its GPU cluster to a staggering 200,000 Nvidia units for Grok-3’s training. With big tech pouring billions into AI data centers and new players constantly emerging, the race for AI supremacy has never been fiercer. The fervor around Grok-3 and Deep Search underscores a rapidly shifting industry—one that might just revolutionize how we work, learn, and even search the internet in the months to come.

2. Google and Poland Forge AI Partnership

Poland and Google signed a memorandum to bring AI into energy, cyber security, and other vital sectors. Google’s CEO Sundar Pichai met Poland’s Prime Minister Donald Tusk to expand the firm’s local operations. Pichai noted Poland hosts Google’s largest engineering hub in Europe, boasting over 2,000 employees.

In addition to strategic AI applications, Google will invest $5 million over five years to train about 1 million young Poles in digital skills. Tusk welcomed the collaboration, stressing it would enhance national security and boost economic growth. He also invited Google to support Poland’s deregulation efforts aimed at reducing red tape and stimulating innovation.

The country’s shift from reliance on Russian fuels has heightened Poland’s focus on cybersecurity. By combining Google’s expertise and investment, officials believe this partnership will help safeguard infrastructure and promote technological advancement.

3. OpenAI Tries to Uncensor ChatGPT

OpenAI unveiled new policies to give its chatbot, ChatGPT, a broader range of responses on challenging or controversial topics. “This principle may be controversial, as it means the assistant may remain neutral on topics some consider morally wrong or offensive,” the company states. Under this revised approach, ChatGPT will provide multiple perspectives while aiming to maintain intellectual freedom.

Some see the changes as a response to criticism over perceived “left-leaning” bias and allegations of censorship. Conservative figures complained after ChatGPT refused certain requests, accusing the AI provider of limiting right-wing voices. OpenAI CEO Sam Altman, however, framed it as a “shortcoming” in earlier versions, vowing more balanced answers.

“However, the goal of an AI assistant is to assist humanity, not to shape it,” 

OpenAI says. These updates don’t represent a free-for-all, though. ChatGPT will still refuse to endorse harmful content or blatant falsehoods.

4. Goldman Sachs Raises China Stock Market Target on AI Boost

Goldman Sachs increased its target for key Chinese stock indices, citing expectations for a major earnings uplift fueled by AI advancements. The bank’s analysts predicted a surge of AI-related inflows, which could reach $200 billion, as enthusiasm for China’s technological capabilities grows.

Recent breakthroughs, including DeepSeek’s AI, sparked a robust rally in Chinese tech stocks. Bolstered by these successes, Goldman now pegs the CSI300 index at 4,700 and projects the MSCI China index to hit 85 within 12 months.

The heightened demand for AI solutions has drawn investors’ attention back to China’s tech sector. Market analysts believe innovations in AI will help sustain momentum, as companies leverage cutting-edge research to redefine productivity and operational efficiency.

5. South Korea Aims to Secure 10,000 GPUs for National AI Center

South Korea announced plans to acquire 10,000 high-performance graphics processing units (GPUs) this year, intensifying the national race for AI dominance. Acting President Choi Sang-mok framed the push as a major public-private initiative, noting that AI competition is no longer just between individual companies but entire national ecosystems.

By securing these GPUs, the government hopes to power its national AI computing center and expedite AI-driven services. The plan aims to mitigate potential supply disruptions and navigate new export regulations imposed by the U.S. on advanced AI chips.

Officials say the move will bolster domestic research and development, spurring AI innovation across multiple industries. With stable, high-speed computational resources, South Korea is positioning itself to stay competitive in a rapidly evolving global AI marketplace.